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To: Ruffian who wrote (5581)	6/15/2000 4:32:00 PM
From: Puck	Read Replies (2) \| Respond to of 34857

Analysts diss QCOM and say GSM lords it over cdmaOne : cnnfn.com Cell phone technology leader Qualcomm (QCOM: Research, Estimates) sank 7-27/32, or 11 percent, to 62-21/3, after some analysts slashed their views on the company. Among them, Chase H&Q analyst Edward Snyder said he sees no positive news in sight for Qualcomm and noted in a research report that the elimination of cellular telephone handset subsidies in Korea is likely to impact the company. Snyder also said it is unlikely that Qualcomm' cdmaOne technology or its derivatives will ever be deployed in China, because of the worldwide dominance of GSM's rival international standard for cellular telephone technology and its significant head-start in China. Snyder set a $50-per-share price target for the stock and reiterated a "market perform" rating. Bears Stearns analyst Wojtek Uzdelewicz also slashed his outlook for Qualcomm, cutting his fiscal year 2000 EPS forecast to $1.05 from $1.08 and 2001 EPS to $1.30 from $1.40. "We spoke with management yesterday and although they were not specific on the numbers, or estimates, but they did indicate that their business in Korea, where they supply a significant amount of chipsets, has been slowing down," Uzdelewicz said. "This is partially a result of an action by the Korean government to ban handset subsidies in South Korea. So, this is about 25 percent of Qualcomm's chipset sales going on in South Korea. That prompted us to get a little bit more cautious on the near-term outlook. Additionally, we are concerned about the outlook for CDMA, this is the Qualcomm technology in China." said Uzdelewicz. Marc Gabelli, managing director of Gabelli Funds told CNNfn: "I think there's still downside to this stock. When an analyst makes a target or an estimate, it's a function of the discounted cash flow based on some form of future growth rate -- especially on a stock like Qualcomm, which is basically a virtual company. They receive royalty revenues on the use of their software, ultimately, for cellular technology." "I don't think that Qualcomm has the third-generation cellular market nor the CDMA market that the analysts were expecting," Gabelli said.